Wisconsin 2025 Regular Session Status: Passed Assembly Bipartisan · 13 R · 1 D cosponsors

AB 451 — Relating to: residential tax incremental districts. (FE)

Last action — Failed to concur in pursuant to Senate Joint Resolution 1

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has passed the Assembly. Introduced September 25, 2025. It now moves to the second chamber.

Next likely step: consideration and a floor vote in the Senate.

Odds of enactment

Moderate chance

Based on the sponsor, cosponsors, and committee posture, this bill has a moderate chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 74% · high confidence

  • Passed Assembly

    Current position in the legislative process.

  • 17 sponsors

    1 primary, 16 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (13 R · 1 D) — cross-party backing.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Summary

An Act to amend 66.1105 (4) (gm) 4. c.; to create 66.1105 (21) of the statutes;

Bill Text

What changed in the latest version

176 added · 93 removed

Plain-language change summary

The recent amendment to Assembly Bill 451 introduces provisions that allow towns with sewer service areas to create residential tax incremental districts (TIDs). This change means that these towns can now exercise powers similar to cities regarding the establishment and financing of these districts, addressing the specific needs for residential development in areas where sewer services are available. By enabling more local governments to participate in creating residential TIDs, the amendment aims to stimulate housing development and ensure that essential utilities are in place before construction begins.

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Latest
- 2026 LEGISLATURE LRBa0439/4 EVM:klm ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 451 October 1, 2025 - Offered by RepresentaRMSTRONG .
- 2026 LEGISLATURE LRB-3120/1 EVM:wlj&cjs ASSEMBLY BILL 451 September 25, 2025 - Introduced by RepresentativesRMSTRONG , B.
At the locations indicated, amend the bill as follows:
ACOBSON , B ROOKS, D ITTRICH, G OEBEN , KITCHENS , K NODL, K REIBICH, M URPHY , O'C ONNOR, P ENTERMAN , R IVERA-WAGNER , S UMMERFIELD and T RANEL , cosponsored by SenatorsEYEN , ARKLEIN and CABRAL -GUEVARA.
Referred to Committee on Housing and Real Estate.
A N A CT to amend 66.1105 (4) (gm) 4.
c.;
to create 66.1105 (21) of the statutes;
relating to:
residential tax incremental districts.
Analysis by the Legislative Reference Bureau This bill allows cities and villages to designate tax incremental districts (TIDs) as residential TIDs, which under the bill would be subject to a different rule regarding the maximum equalized value of taxable property that may be contained in the TID than would apply to other TIDs.
TIF generally Under current law, cities and villages may use tax incremental financing (TIF) to encourage development in the city or village.
In general, under TIF, a city or village pays for improvements in a TID and then collects tax moneys attributable to all taxing jurisdictions on the increased property value in the TID for a certain period of time to pay for the improvements.
Ideally, after that period of time, the city or village will have been repaid for its initial investment and the property tax base in the TID will have permanently increased in value.
In general and in brief, a city or village makes use of TIF using the following procedure:
Page 3, line 1:
The city or village designates an area as a TID and creates a project plan laying out the expenditures that the city or village will make within the TID, and the designation and project plan are approved by representatives of the other taxing jurisdictions (joint review board).
before that line insert:
- 2026 Legislature - 2 - LRB-3120/1 EVM:wlj&cjs ASSEMBLY BILL 451 2.
XSECTION 1g.
The Department of Revenue establishes the “base value” of the TID.
60.23 (32) (g) of the statutes is created to read:
This value is the equalized value of all taxable property within the TID at the time of its creation.
60.23 (32) (g) In this paragraph, Xqualifying townY means a town in which any territory is included in a sewer service area, as defined in s.
3.
60.23 (32) (eg) 1.
Each year thereafter, the “value increment” of the property within the TID is determined by subtracting the base value from the current value of property within the TID.
b., and sewer service is either currently extended to any territory in the town or will be provided in a proposed residential tax incremental district created under s.
The portion of taxes collected on any positive value increment (the tax increment) is collected by the city or village for use solely for the project costs of the TID.
66.1105 (21) before the use or operation of any improvements to real property in the district.
Tax increments collected by the city or village include taxes that would have been collected by other taxing jurisdictions, such as counties or school districts, if the TID had not been created.
The town board of any qualifying town may exercise all powers of cities under s.
4.
66.1105 (21).
Tax increments are collected until the city or village has recovered all of its project costs or until the TID reaches its statutory termination date.
A qualifying town acting under this paragraph exercises the powers of a city and is subject to the same duties and liabilities as a city under s.
Residential TIDs This bill allows a city or village to create a residential TID.
66.1105 - 2026 Legislature - 2 - LRBa0439/4 EVM:klm (21).
To create a residential TID, the local legislative body must adopt a resolution finding all of the following:
Section 66.1105 (16) does not apply to a tax incremental district created by a qualifying town under s.
1.
66.1105 (21).
That all project costs of the TID are related to residential developments that satisfy certain limits related to type of residences developed, setbacks, lot sizes, and structure sizes.
S ECTION 1m.
66.1105 (2) (f) 3.
(intro.) of the statutes is amended to read:
66.1105 (2) (f) 3.
(intro.) Notwithstanding subd.
1., project costs may include any expenditures made or estimated to be made or monetary obligations incurred or estimated to be incurred by the city for newly platted residential development only for a residential tax incremental district under sub.
(21) or any tax incremental district for which a project plan is approved before September 30, 1995, or for a mixed-use development tax incremental district to which one of the following applies:Y.
Page 3, line 14:
That all project costs of the TID are for the construction or improvement of infrastructure necessary for residential development within the TID.
after that line insert:
3.
XSECTION 1s.
That all project costs of the TID will be paid directly from tax increments or financed by a developer.
66.1105 (6) (a) 7.
Under current law, when creating a new TID or amending a TID, a city or village must make a finding that the equalized value of taxable property of the new or amended TID, plus the value increment of all existing TIDs in the city or village, does not exceed 12 percent of the total equalized value of taxable property in the city or village.
Under this bill, a residential TID is not subject to this 12 percent rule.
However, residential TIDs are subject to a separate, but similar 3 percent rule.
Show all 138 changed rows (98 more)
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That is, when creating a new residential TID or amending a residential TID, a city or village must make a finding that the equalized value of taxable property of the new or amended residential TID, plus the value increment of all existing residential TIDs in the city or village, does not exceed 3 percent of the total equalized value of taxable property in the city or village.
Currently, a city or village generally may amend the project plan of a TID with the approval of the joint review board.
Under this bill, with regard to a residential TID, a project plan may not be amended to increase the project costs of the TID later than 10 years before the unextended termination date of the TID except upon unanimous vote of the joint review board.
The bill also specifies that a residential TID may not be a donor or recipient TID.
That is, tax increments generated by the residential TID may not be used to pay project costs for another TID and tax - 2026 Legislature - 3 - LRB-3120/1 EVM:wlj&cjs ASSEMBLY BILL 451 S ECTION 1 increments generated by another TID may not be used to pay a residential TID’s project costs.
Because this bill may increase or decrease, directly or indirectly, the cost of the development, construction, financing, purchasing, sale, ownership, or availability of housing in this state, the Department of Administration, as required by law, will prepare a report to be printed as an appendix to this bill.
For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SECTION 1.
66.1105 (4) (gm) 4.
c.
66.1105 (6) (a) 7.
66.1105 (4) (gm) 4.
Twenty years after the tax incremental district is created if the district is a residential tax incremental district under sub.
c.
(21) or if the district is created on or after October 1, 2004, and if the district is at least predominantly suitable for mixed-use development or industrial sites under sub.
Except as provided in subs.
(4) (gm) 6.
(10) (c), (16) (d), (17), (18) (c) 3., (20) (b), and (20m) (d) 1., and (21) (g), the equalized value of taxable property of the district plus the value increment of all existing districts does not exceed 12 percent of the total equalized value of taxable property within the city.
If the life of the district is extended under sub.
In determining the equalized value of taxable property under this subd.
(7) (am) 2.
4.
an allocation under this subdivision may be made 23 years after such a district is created.
c., the department of revenue shall base its calculations on the most recent equalized value of taxable property of the district that is reported under s.
If the life of the district is extended under sub.
70.57 (1m) before the date on which the resolution under this paragraph is adopted.
(7) (am) 4., an allocation under this subdivision may be made for not more than an additional 3 years after allocations would otherwise have been terminated under this subdivision.For a tax incremental district created after March 3, 2016, the period during which a tax increment may be allocated under this subdivision shall be increased by one year if that district[s project plan is adopted under sub.
If the department of revenue determines that a local legislative body exceeds the 12 percent limit described in this subd.
(4) (g) after September 30 and before May 15.
4.
- 2026 Legislature - 3 - LRBa0439/4 EVM:klm SECTION 1u.
c., the department shall notify the city of its noncompliance, in writing, not later than December 31 of the year in which the department receives the completed application or amendment forms described in sub.
66.1105 (7) (am) 2.
(5) (b).
of the statutes is amended to read:
SECTION 2.
66.1105 (7) (am) 2.
66.1105 (21) of the statutes is created to read:
Except as provided in subds.
66.1105 (21) RESIDENTIAL TAX INCREMENTAL DISTRICTS .
4., 5., 6., 7., and 9., for a residential tax incremental district under sub.
(a) A city may create - 2026 Legislature - 4 - LRB-3120/1 EVM:wlj&cjs ASSEMBLY BILL 451 SECTION 2 a tax incremental district as a residential tax incremental district if all of the following apply:
(21) or for a tax incremental district that is created after September 30, 2004, about which a finding is made under sub.
1.
(4) (gm) 4.
The local legislative body adopts a resolution assigning a name to the district for identification purposes.
The first district created under this subsection shall be known as “Residential Tax Incremental District Number One, City of ....” Each subsequently created residential tax incremental district shall be assigned the next consecutive number.
2.
The local legislative body adopts a resolution finding all of the following:
that not less than 50 percent, by area, of the real property within the district is suitable for industrial sites or mixed-use development, 20 years after the district is created, except that the city that created the district may, subject to sub.
The project plan complies with par.
(8) (e), request that the joint review board extend the life of the district for an additional 3 years.
(b).
Along with its request for a 3-year extension, the city may provide the joint review board with an independent audit that demonstrates that the district is unable to pay off its project costs within the 20 years after the district is created.
b.
The joint review board may deny or approve a request to extend the life of the district for 3 years if the request does not include the independent audit, and the board shall approve a request to extend the life of the district for 3 years if the request includes the audit.
All project costs are for expenditures authorized under par.
If the joint review board extends the district[s life, the district shall terminate at the earlier of the end of the extended period or the period specified in par.
(c).
(a).
c.
For a tax incremental district created after March 3, 2016, the termination date for a district to which this subdivision applies shall either be increased by one year beyond the otherwise applicable termination date under this subdivision if that district[s project plan is adopted under sub.
All project costs will be paid directly under sub.
(4) (g) after September 30 and before May 15, or shall be the period specified in par.
(9) (a) 1.
(a), whichever is earlier.Y.
or financed by a developer.
d.
The equalized value of taxable property of the residential tax incremental district plus the value increment of all existing residential tax incremental districts does not exceed 3 percent of the total equalized value of taxable property within the city.
Page 5, line 11:
The clerk of the local legislative body certifies the resolution under subd.
delete X15,000Y and substitute X12,500Y.
2.
- 2026 Legislature - 4 - LREVM:klm4 4.
and forwards a copy of the certified resolution to the department of revenue and the joint review board.
Page 5, line 12:
4.
delete Xresidential lotY and substitute Xlot for a single- family residenceY.
The joint review board approves the creation of the tax incremental district as a residential tax incremental district.
Page 5, line 12:
The city establishes in the resolution under subd.
after that line insert:
2.
X4m.
or by ordinance all of the following with regard to residential developments that meet the requirements under par.
The lot width of each lot for a 2-family residence is 80 feet or less.Y.
(b) within the district:
6.
- 2026 Legislature - 5 - LRB-3120/1 EVM:wlj&cjs ASSEMBLY BILL 451 SECTION 2 a.
Page 5, line 19:
The maximum amount of development-related fees that may be charged by the city for a development.
after Xincremental districtY insert Xand professional service costs, imputed administrative costs, and organizational costsY.
b.
The architectural and construction requirements that will apply to a development.
(b) All public works, improvements, and project costs included in the project plan for a residential tax incremental district shall be related to residential developments that satisfy all of the following:
1.
The development consists entirely of single-family or 2-family residences that are owner-occupied.
2.
The lot size of each single-family residence is less than 7,500 square feet.
3.
The lot size of each 2-family residence is 15,000 square feet or less.
4.
The lot width of each residential lot is 70 feet or less.
5.
No side setback is greater than 10 feet 6.
No single-story residence is larger than 1,500 square feet.
Page 6, line 5:
No 2-story residence is larger than 2,000 square feet.
delete X(a)Y and substitute X(b)Y.
(c) Notwithstanding sub.
8.
(2) (f), project costs for a residential tax incremental district may include only costs, including financing costs, related to the construction or improvement of infrastructure necessary for residential developments within the district.
Page 6, line 14:
Project costs for a residential tax incremental district may include costs related to stormwater only to the extent that the costs are for improvements related to providing service to the entire residential tax incremental district and not to individual lots.
after that line insert:
(d) 1.
X(h) If the department of revenue determines that a local legislative body exceeds the limit described in par.
All project costs for a residential tax incremental district shall be paid - 2026 Legislature - 6 - LRB-3120/1 EVM:wlj&cjs ASSEMBLY BILL 451 SECTION 2 directly under sub.
(a) 2.
(9) (a) 1.
d., the department shall notify the city of its noncompliance, in writing, not later than December 31 of the year in which the department receives the certified resolution as described in par.
from tax increments generated by the residential tax incremental district or financed by a developer.
(a) 3.
2.
A local legislative body that receives a notification under this paragraph shall take one of the following actions:
All payments made by a city to a developer for financing a residential tax incremental district shall be made under sub.
(9) (a) 1.
(e) Notwithstanding sub.
(4) (h) 1.
and (4m) (a), with regard to a residential tax incremental district, a project plan may not be amended to increase the project costs of the district later than 10 years before the unextended termination date of the district except upon unanimous vote of the joint review board.
(f) Notwithstanding sub.
(6) (d), (e), or (f), a residential tax incremental district may not become a donor district or receive tax increments from a donor district.
(g) None of the following apply to a residential tax incremental district:
Rescind its approval of the project plan resolution.
Subsection (4) (gm) 3., 4.
a.
and bm., and 6.
Not later than 30 days after receiving the notification, remove parcels from the district[s boundaries so that the district complies with the limit described in par.
The 12 percent limit described under sub.
(a) 2.
(4) (gm) 4.
d.
c.
and provide notice of the removal to the department.
(END)
The removal of parcels under this subdivision may not substantially alter the district[s project plan or the resolution approved under par.
(a).
S ECTION 3.
Effective date.
- 2026 Legislature - 5 - LRBa0439/4 EVM:klm (1) This act takes effect on October 1, 2026.Y.
(END )
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Action History

  1. Failed to concur in pursuant to Senate Joint Resolution 1

  2. Representative Emerson added as a coauthor

  3. Representative Brown added as a coauthor

  4. Senator Ratcliff added as a cosponsor

  5. Public hearing held

  6. LRB correction (Assembly Amendment 1)

  7. LRB correction (Assembly Amendment 2)

  8. Fiscal estimate received

  9. Read first time and referred to committee on Insurance, Housing, Rural Issues and Forestry

  10. Received from Assembly

  11. Ordered immediately messaged

  12. Read a third time and passed, Ayes 88, Noes 7

  13. Rules suspended

  14. Ordered to a third reading

  15. Assembly Amendment 2 adopted

  16. Assembly Amendment 1 adopted

  17. Read a second time

  18. Representative Stubbs added as a coauthor

  19. Fiscal estimate received

  20. Representative Snodgrass added as a coauthor

  21. Assembly Amendment 2 offered by Representative Armstrong

  22. Referred to calendar of 10-7-2025

  23. Report passage as amended recommended by Committee on Housing and Real Estate, Ayes 12, Noes 2

  24. Report Assembly Amendment 1 adoption recommended by Committee on Housing and Real Estate, Ayes 12, Noes 2

  25. Representative Palmeri added as a coauthor

  26. Executive action taken

  27. Assembly Amendment 1 offered by Representative Armstrong

  28. Public hearing held

  29. Representative Kaufert added as a coauthor

  30. Read first time and referred to Committee on Housing and Real Estate

  31. Introduced by Representatives Armstrong, B. Jacobson, Brooks, Dittrich, Goeben, Kitchens, Knodl, Kreibich, Murphy, O'Connor, Penterman, Rivera-Wagner, Summerfield and Tranel; cosponsored by Senators Feyen, Marklein and Cabral-Guevara

Sponsors

Sponsorship breakdown

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1 sponsors · 16 co-sponsors · 115 not signed on · 7 voted No

Sponsors (1)

Co-sponsors (16)

Not signed on (115)

115 members have not signed on to this bill.

Show all 115 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Read a third time and passed

Passed 88 Yea · 7 Nay · 4 Other
Party YeaNayPresentNot Voting
Republican 52100
Democrat 33604
Unaffiliated 3000
Total 88704
% of votes cast 89%7%0%4%
How each member voted (99)
Member Party Vote
JOHNSON — Yea
MOORE OMOKUNDE — Yea
SPEAKER — Yea
Anderson, Clinton Democrat Not Voting
Andraca, Deb Democrat Yea
Arney, Margaret Democrat Yea
Bare, Mike Democrat Yea
Billings, Jill Democrat Yea
Brown, Brienne Democrat Yea
Clancy, Ryan Democrat Nay
Cruz, Angelina Democrat Yea
DeSanto, Karen Democrat Yea
DeSmidt, Ben Democrat Yea
Doyle, Steve Democrat Yea
Emerson, Jodi Democrat Yea
Fitzgerald, Joan Democrat Yea
Goodwin, Russell Democrat Yea
Haywood, Kalan Democrat Yea
Hong, Francesca Democrat Nay
Hysell, Andrew Democrat Yea
Jacobson, Jenna Democrat Yea
Joers, Alex Democrat Yea
Kirsch, Karen Democrat Yea
Madison, Darrin Democrat Nay
Mayadev, Renuka Democrat Yea
McCarville, Maureen Democrat Yea
McGuire, Tip Democrat Yea
Miresse, Vincent Democrat Nay
Neubauer, Greta Democrat Not Voting
Ortiz-Velez, Sylvia Democrat Yea
Palmeri, Lori Democrat Yea
Phelps, Christian Democrat Nay
Prado, Priscilla Democrat Nay
Rivera-Wagner, Amaad Democrat Yea
Roe, Ann Democrat Yea
Sheehan, Joe Democrat Yea
Sinicki, Christine Democrat Yea
Snodgrass, Lee Democrat Yea
Spaude, Ryan Democrat Yea
Stroud, Angela Democrat Yea
Stubbs, Shelia Democrat Yea
Subeck, Lisa Democrat Yea
Taylor, Sequanna Democrat Yea
Tenorio, Angelito Democrat Not Voting
Udell, Randy Democrat Yea
Vining, Robyn Democrat Not Voting
Allen, Scott Republican Yea
Armstrong, David Republican Yea
August, Tyler Republican Yea
Behnke, Elijah Republican Yea
Born, Mark Republican Yea
Brill, Lindee Republican Yea
Brooks, Robert Republican Yea
Callahan, Calvin Republican Yea
Dallman, Alex Republican Yea
Dittrich, Barbara Republican Yea
Donovan, Bob Republican Yea
Duchow, Cindi Republican Yea
Franklin, Benjamin Republican Yea
Goeben, Joy Republican Yea
Green, Chanz Republican Yea
Gundrum, Rick Republican Yea
Gustafson, Nate Republican Yea
Hurd, Karen Republican Yea
Jacobson, Brent Republican Yea
Kaufert, Dean Republican Yea
Kitchens, Joel Republican Yea
Knodl, Daniel Republican Yea
Kreibich, Rob Republican Yea
Krug, Scott Republican Yea
Kurtz, Tony Republican Yea
Maxey, Dave Republican Yea
Melotik, Paul Republican Yea
Moses, Clint Republican Yea
Murphy, David Republican Yea
Mursau, Jeffrey Republican Yea
Nedweski, Amanda Republican Yea
Neylon, Adam Republican Yea
Novak, Todd Republican Yea
O'Connor, Jerry Republican Yea
Penterman, William Republican Yea
Petersen, Kevin Republican Yea
Piwowarczyk, Jim Republican Yea
Pronschinske, Treig Republican Yea
Rodriguez, Jessie Republican Yea
Snyder, Patrick Republican Yea
Sortwell, Shae Republican Yea
Spiros, John Republican Yea
Steffen, David Republican Yea
Summerfield, Rob Republican Yea
Swearingen, Rob Republican Yea
Tittl, Paul Republican Yea
Tranel, Travis Republican Yea
Tucker, Duke Republican Yea
Tusler, Ron Republican Yea
VanderMeer, Nancy Republican Yea
Wichgers, Chuck Republican Nay
Wittke, Robert Republican Yea
Zimmerman, Shannon Republican Yea

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Subjects

taxation housing
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Frequently asked questions

What does AB 451 do?
An Act to amend 66.1105 (4) (gm) 4. c.; to create 66.1105 (21) of the statutes;
Who sponsors AB 451?
AB 451 is sponsored by Feyen, Marklein, Cabral-Guevara, Armstrong, David (Republican), Jacobson, Brent (Republican), Brooks, Robert (Republican), Dittrich, Barbara (Republican), Goeben, Joy (Republican), Kitchens, Joel (Republican), Knodl, Daniel (Republican), Kreibich, Rob (Republican), Murphy, David (Republican), O'Connor, Jerry (Republican), Penterman, William (Republican), Rivera-Wagner, Amaad (Democrat), Summerfield, Rob (Republican), and Tranel, Travis (Republican).
What is the current status of AB 451?
This bill has passed the Assembly. Introduced September 25, 2025. It now moves to the second chamber.
Where can I track AB 451?
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